In Performing the Impairment Test for Goodwill, the Company Had

question 23

Multiple Choice

In performing the impairment test for goodwill, the company had the following 2016 and 2017 information available.
$\begin{array}{lll}&2016&2017\\\text { Fair value of the reporting unit } & \$ 350,000 & \$ 400,000 \\\text { Net book value (including } \$ 50,000 \text { goodwill) } & \$ 360,000 & \$ 380,000\end{array}$
Assume that the carrying value of the identifiable assets are a reasonable approximation of their fair values.Based upon this information what are the 2016 and 2017 adjustment to goodwill, if any
$\quad$$\quad$ 2016 $\quad$$\quad$ $\quad$$\quad$ 2017

• A)no adjustment \(\quad \)$20,000 decrease
• B)$10,000 increase \(\quad \)$20,000 decrease
• C)$10,000 decrease \(\quad \)$20,000 decrease
• D)$10,000 decrease \(\quad \)no adjustment

Understand the relationship between interest rates and bond prices.

Recognize the different risks associated with bond investing.

Explain the importance and functions of bond covenants and how they protect bondholders.

Understand the different yield curves and what they signify about market conditions.

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Definitions:

Medical Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions about health and disease.

Therapy

Treatment intended to relieve or heal a disorder, which can involve medical, psychotherapeutic, or other modalities.

Human Experimentation

The use of human subjects in medical or scientific research to explore the effects of variables under controlled conditions.

Social Goal

An objective or aim that is considered to benefit society as a whole, such as reducing inequality or improving public health.